Overview

ICBC provides $1 billion sovereign loan to address Oman’s fiscal deficit

Commitments (Constant USD, 2023)$1,090,721,573

Commitment Year•2016Country of Activity•OmanDirect Recipient Country of Incorporation•OmanSector•General Budget SupportFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jun 1, 2016

Start (actual): Jun 1, 2016

End (actual): May 1, 2017

Last repayment (originally scheduled): Dec 31, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Government Agencies

Oman Ministry of Finance

Loan description

ICBC provides $1 billion sovereign loan to address Oman’s fiscal deficit

Interest type•UnknownMaturity•1 years

Narrative

Full Description

Project narrative

In June 2016, Industrial and Commercial Bank of China (ICBC) and the Government of Oman, represented by the Omani Ministry of Finance, entered into a short-term loan agreement worth $1 billion (or 384.3 million OMR). The loan carried a 1 year maturity (with a loan repayment date in May 2017). The proceeds of the loan were to be used by the borrower to address the deficit in the government budget caused by a decline in oil revenues.

Staff comments

1. This loan is characterized as a ’sovereign loan’ (主权贷) in a commercial guide to Oman published by China’s Ministry of Commerce (2017年6月，阿曼获中国工商银行10亿美元主权贷款). 2. The loan’s interest rate is unknown, but given its very short maturity length, it is highly unlikely that the loan was extended on concessional terms.